Replies to This Discussion

Permalink Reply by JJ Hornblass on November 5, 2008 at 2:49pm

Interestingly, we've seen some pullback in credit union auto lending in recent weeks. Apparently, credit unions are being more discreet about who they offer an auto loan.

We're getting more details on this trend for publication in an upcoming issue of Auto Finance News.

Permalink Reply by Barry B Kirby on November 5, 2008 at 2:53pm

That is interesting...it may also be a correlation with their location. In Ohio, Georgia, Michigan and Texas we have seen tremendous movement on the CU indirect side. I look forward to your publication though!

Permalink Reply by Barry B Kirby on November 6, 2008 at 9:04am

According to the Credit Union Journal dated 10/27/08 they recognize from several indirect lending organizations that Credit Unions took up 15.8% of the auto indirect market in 2007 and that figure jumped to 20.5% this August of 2008. Thats one of the single highest jumps in the indirect growth thus far among credit unions.

CU Direct Connect out of Colorado based Credit Union CUSO servicing 50 Credit Unions shattered all its records in September when it funded $151 million in new auto loans.

Permalink Reply by JJ Hornblass on November 10, 2008 at 10:34pm

Does that mean credit unions are pricing to acquire marketshare, or is the jump in share simply a function of having capital available to make loans?

Barry B Kirby said:

According to the Credit Union Journal dated 10/27/08 they recognize from several indirect lending organizations that Credit Unions took up 15.8% of the auto indirect market in 2007 and that figure jumped to 20.5% this August of 2008. Thats one of the single highest jumps in the indirect growth thus far among credit unions.

CU Direct Connect out of Colorado based Credit Union CUSO servicing 50 Credit Unions shattered all its records in September when it funded $151 million in new auto loans.

Permalink Reply by Barry B Kirby on November 11, 2008 at 4:13pm

I think its a bit of both...we are hearing more and more that dealers are seaking out their local lenders to help make deals happen. I cant really say its a matter of pricing, because that would suggest that their is competition that is driving the pricing lower or higher, which their isnt any of.

If I had to guess, I would say its because the well has dried up for many large dealers in regards to their large lenders and now they are turning to alternative routes. I would say that dealers are now considering them a viable source as the large lenders raise standards to where even qualified buyers cant be approved. CU's are more than happy to go and grab up these low 700's and high 600 customers.

Permalink Reply by Barry B Kirby on April 20, 2009 at 10:05am

As a follow up back to this article, the numbers are official and Credit Unions are commanding a larger Auto Loan Market Share and entering the indirect market in droves in an effor to fill the vaccum created by the exit of the larger captives and banks...

JJ have you all seen the same?